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On Mon, 02 May 2011 01:24:28 -0400, wrote:

On Sun, 01 May 2011 14:51:19 -0700, wrote:

So your tax cut repeal is insignificant. A half percent is not only
possible it is very likely. That was what S&P report really said.
This is not an issue of whether the US will pay back the bonds, it is
what the dollar will be worth when they do.

As would be the opposite. It's a short term issue which has nothing to
do with the long term problem.

The fed money rolls over as often as every 30 days. That could easily
be an immediate problem. If the foreign money people start believing
the dollar is dropping in value they will want an interest hike that
keeps them whole. This is an auction.

It never has been. Perhaps China wants to eliminate it's customer
base? I doubt it.